Angelika is the Chief Operating Officer of One Spice Inc., a firm that grows and processes the Naga Viper pepper, one of the world's hottest peppers. Angelika wants to better understand the relationship between her firm's organizational culture and the ability to achieve competitive advantage. The relationship between these two states that:______.
a. having a strong culture leads to achieving a competitive advantage only when companies are pursuing a cost leadership strategy.
b. a firm can achieve a competitive advantage when their organizational culture follows the VRIO principles.
c. having a strong culture leads to a competitive advantage only when companies are pursuing a differentiation strategy.
d. having a strong culture always leads to achieving a competitive advantage because it leads to greater employee engagement.

Answers

Answer 1
I think it’s c (sorry is it’s wrong)
Answer 2

The relationship between two states that having a strong culture leads to a competitive advantage only when companies are pursuing a differentiation strategy.

What is the term Competitive advantage about?

Competitive advantage refers to a manner in which rivalry between rivals can be created. The benefit for the consumer is improved by both lower prices and more advantages and services which support higher pricing.

In general, there are four possible ways for a company to differentiate–becoming the cost leader in a small or wide range of business activities (i.e., being the cheapest producer in the industry), and becoming a differentiation leader (i.e. competing in areas other than price valued by customers).

Therefore, correct option is C.

Learn more about competitive advantage , refer to the link:

https://brainly.com/question/5647002


Related Questions

The following data are accumulated by Zadok Company in evaluating the purchase of $370,000 of equipment, having a four-year useful life: Net Income Net Cash Flow Year 1 $67,500 $160,000 Year 2 47,500 140,000 Year 3 (12,500) 80,000 Year 4 (12,500) 80,000 a. Assuming that the desired rate of return is 12%, determine the net present value for the proposal. b. Would management be likely to look with favor on the proposal? Explain.

Answers

Answer: Management will not look at this investment in equipment favorably, as the net present value of the project is negative, which will decrease shareholder's wealth.

Explanation:

                                    0                   1            2             3              4

Net Cashflows        -370,000     160000      140000 80000 80000

Discount factor  12%    1               0.893 0.797 0.712 0.636

PV of cashflows       -370000     142857 111607 56942  50841

NPV -7752    

The assumptions of the production order quantity model are met in a situation where annual demand is 3650 units, setup cost is $100, holding cost is $24 per unit per year, the daily demand rate is 20 and the daily production rate is 100. What is the production order quantity for this problem

Answers

Answer:

Explanation:

Calculation to determine the production order quantity for this problem

Sqrt [ (2*3650*100)/ (24*(1-20/100)) ] = 500

Sqrt [ (2*50000*20)/ (10*(1-20/100)) ] = 500

=√200,000/(10*0.8)

=200,000/8

=250000

If a company provides an online service that delivers physical products and services but does not exist as a brick-and-mortar store, it is considered which type of brand

Answers

Answer: a. an e-brand brand

Explanation:

An e-brand is one that provides just an online service for merchandise sales. These companies do not have physical locations but rather show you all that they sell on their websites and then when you purchase something, they deliver it as a physical good. The most popular example of such is Amazon.

The advantage of such brands is that they get to save on the rental and other property costs related to establishing brick-and-mortar stores because they are online.

Use the following information to prepare a multistep income statement and a balance sheet for Sherman Equipment Co. for 2016. (Hint: Some of the items will not appear on either statement, and ending retained earnings must be calculated.) (Balance Sheet only: Items to be deducted must be indicated with a minus sign.)
Salaries Expense $ 69,000 Operating Expenses $ 62,000
Common Stock 100,000 Cash Flow from Investing Activities 78,400
Notes Receivable 24,000 Prepaid Rent 12,500
(short term)
Allowance for Doubtful Accounts 7,800 Land 40,000
Uncollectible Accounts Expense 8,100 Cash 48,100
Supplies 1,200 Inventory 98,300
Interest Revenue 5,400 Accounts Payable 46,000
Sales Revenue 320,000 Salaries Payable 12,000
Dividends 3,500 Cost of Goods Sold 148,000
Interest Receivable (short term) 1,500 Accounts Receivable 56,000
Beginning Retained Earnings 81,000

Answers

Answer:

Sherman Equipment Co.

a) Sherman Equipment Co.

Multistep Income Statement

For the year ended December 31, 2016

Sales Revenue                          $320,000

Cost of Goods Sold                     148,000

Gross profit                               $172,000

Operating expenses:

Salaries Expense                     $ 69,000

Operating Expenses                  62,000

Uncollectible Accounts Expense 8,100

Total operating expenses      $139,100

Operating income                   $32,900

Interest Revenue                        5,400

Net income                             $38,300

Balance Sheet

As of December 31, 2016

Assets

Current Assets:

Cash                                                             $48,100

Interest Receivable (short term)                     1,500

Accounts Receivable                    56,000

Allowance for Doubtful Accounts (7,800)  48,200

Notes Receivable (short term)                    24,000

Supplies                                                          1,200

Inventory                                                     98,300

Prepaid Rent                                               12,500

Total current assets                              $233,800

Long-term assets:

Land                                                           40,000

Total assets                                          $273,800

Liabilities and Equity:

Current liabilities:

Accounts Payable                                 $46,000

Salaries Payable                                      12,000

Total current liabilities                         $58,000

Equity:

Common Stock                                 $100,000

Ending Retained Earnings                   115,800

Total equity                                       $215,800

Total liabilities and equity               $273,800

Explanation:

a) Data and Calculations:

Cash 48,100

Interest Receivable (short term) 1,500

Accounts Receivable 56,000

Notes Receivable (short term) 24,000

Supplies 1,200

Inventory 98,300

Prepaid Rent 12,500

Land 40,000

Allowance for Doubtful Accounts 7,800

Accounts Payable 46,000

Salaries Payable 12,000

Common Stock 100,000

Beginning Retained Earnings 81,000

Dividends 3,500

Interest Revenue 5,400

Sales Revenue 320,000

Cost of Goods Sold 148,000

Salaries Expense $ 69,000

Operating Expenses $ 62,000

Uncollectible Accounts Expense 8,100

Cash Flow from Investing Activities 78,400

Beginning Retained Earnings 81,000

Net income                              38,300

Dividends                                 (3,500)

Ending Retained Earnings    115,800

Suppose that Bob's company uses exponential smoothing to make forecasts. Further suppose that last period's demand forecast was for 20,000 units (Ft) and last period's actual demand was 21,000 units (At). Bob's company uses a smoothing constant (alpha) of 0.4. What should be the forecast for this period

Answers

Answer:

20,400 units

Explanation:

Calculation to determine What should be the forecast for this period

Using this formula

F t+1=α*D t+(1-α)

Where,

F t+1=Forecast for this period

α=Smoothing constant (alpha)

D t=Last period's actual demand

(1-α)=(1-Last period's demand forecast)

Let plug in the formula

F t+1=(0.4*21,000 units)+(1-0.4*20,000 units)

F t+1=(0.4*21,000 units)+ (0.60*20,000 units)

F t+1=8,400 units+12,000 units

F t+1=20,400 units

Therefore What should be the forecast for this period is 20,400 units

Using the retail inventory method, if the cost to retail ratio is 70% and ending inventory at retail is $145,000, then estimated ending inventory at cost is $207,143.

a. True
b. False

Answers

Answer:

b. False

Explanation:

The calculation of the estimated ending inventory is given below:

When the cost to retail ratio is 70%,

and

The ending inventory at retail is $145,000,

So, the ending inventory at cost is

= 70% of $145,000

= $101,500

Therefore the given statement is false

Fly High Inc. intends to invest in a new airplane. Information regarding the investment in the airplane is given below: Project A Life of project 5 years Initial investment $33,277,644 Net annual after-tax cash inflow $7,900,000 The cost of capital for the company is 8%. Calculate the internal rate of return (IRR) for the new airplane. a.10% b.8% c.6% d.5%

Answers

Answer:

c.6%

Explanation:

IRR is the interest rate at which the NPV of a project is zero

Use the following steps to determine the IRR

1. Determine the cash flows

2. Calculate the Total Annual cash flow

3. Use the IRR function in Excel to calculate the IRR for the calculated cash flow

The working is attached with this answer please find it.

A bank buys bonds with a par value of $25 million for $24,040,000. The coupon rate is 10 percent, and the bonds pay annual payments. The bonds mature in four years. The bank wants to sell them in two years, and estimates the required rate of return in two years will be 8 percent. What will the market value of the bonds be in two years?

Answers

Answer:

$25,891,632.37

Explanation:

The computation of the market value of the bond in two years is given below:

We know that

Market value of the bonds be in two years is

= pv(rate, nper,pmt,fv)

Here  

Nper = 2

PV = ?

PMT =  25000000 × 10% = 2500000

FV = 25000000

Rate = 8%

Now  

Market value of the bonds be in two years is

= pv( 8%,2,2500000,25000000)

= $25,891,632.37

XYZ expects to sell 28,000 pools in 2019. It budgets the beginning inventory of Direct Materials, Work-in-process, and Finished goods to be 26,000; 0; 1,300 units; AND ending inventory to be 26,000; 0; 2,800 units. How many pools need to be produced

Answers

Answer:

the  no of pools need to be produced is 29,500 units

Explanation:

The computation of the no of pools need to be produced is given below:

= Ending finished goods inventory units + number of units sold - beginning finished goods inventory units

= 2800 + 28000 - 1300

= 29500 units.

Hence, the  no of pools need to be produced is 29,500 units

Bonita Industries has a weighted-average unit contribution margin of $30 for its two products, Standard and Supreme. Expected sales for Bonita are 20000 Standard and 80000 Supreme. Fixed expenses are $2100000. How many Standards would Bonita sell at the break-even point

Answers

Answer:

70,000 units

Explanation:

Step 1 : Determine the Sales Mix

Standard : Supreme

20000 : 80000

1 : 4

Step 2 : Determine the Overall Break even Point

Break even Point = Fixed Cost ÷ Contribution per unit

                              = $2100000÷ $30

                              = 70,000

Step 3 : Determine break-even point for Standards

Standards Break even point = 70,000 x 1

                                                = 70,000 units

Read the argument below and determine the underlying principle that was used to come to the conclusion presented: A free college education for every citizen is important because it helps the United States create the best-educated workforce in the world. European countries like Germany are able to provide a free college education to their citizens, and the United States should as well. Which other argument uses the same underlying principle as the argument above?

a. Children should get free dental care, even if they drink a lot of soda which causes cavities.
b. Children should get free dental care because it will help prevent more serious issues later on and reduces future healthcare costs.
c. Every child should get free dental care, even if they can afford to pay for it.

Answers

Answer:

1. The underlying principle is

to create the best-educated workforce in the world.

2. The argument that uses the same underlying principle as the argument  1 above is:

b. Children should get free dental care because it will help prevent more serious issues later on and reduces future healthcare costs.

Explanation:

The underlying principle is a general rule which can be applied to different situations.  It shows the reason for doing something or embarking on a program.  For example, to offer free college education for every U.S. citizen, the underlying principle is to "create the best-educated workforce in the world."

A consumer's weekly income is $250, and the consumer buys 12 bars of chocolate per week. When weekly income increases to $280, the consumer buys 13 bars per week. The income elasticity of demand for chocolate by this consumer is about

Answers

Answer:

0.69

Explanation:

Given that we have the formula for calculating income elasticity of demand as the percent change in quantity demanded divided by the percent change in income, hence, we have the percent change in quantity demanded => 13 - 12 = 1 ÷ 12 = 0.083

the percent change in income => 280 - 250 = 30 ÷ 250 = 0.12

Therefore we have => 0.083 ÷ 0.12 = 0.69

Hence, the final answer is 0.69

Rhiannon Corporation has bonds on the market with 17.5 years to maturity, a YTM of 6.4 percent, a par value of $1,000, and a current price of $1,037. The bonds make semiannual payments. What must the coupon rate be on these bonds

Answers

Answer:

6.75%

Explanation:

The calculation of the coupon rate is given below:

Given that

PV = $1,037

FV = $1,000

YTM = 6.4% ÷ 2 = 3.2%

NPER = 17.5 × 2 = 35

The formula should be

=PMT(RATE,NPER,-PV,FV,TYPE)

After applying the above formula, the pmt should be $33.77

Annual pmt is

= $33.77 × 2

= $67.55

Now the coupon rate is

= 67.55 ÷$1,000

= 6.75%

1-What will be the effect of the following on the accounting equation: a-Amer started business with cash 1,80,000$ b-Purchased goods for cash 50,000$ and on credit 20,000$ c-Sold goods for cash 40,000$ costing 24,000$ d-Rent paid 10,000$, rent outstanding 2000$The answer will be : a-Assets 2,06,000 , liabilities 22,000 , capital 184,000 b-assets 204,000 , Liabilities 20,000 , capital 184,000 c-assets 186,000 , Liabilities 22,000 , capital 164,000​

Answers

Answer:

Purchased goods for cash, 20,000. 4. Purchased goods on credit, 36,000. 5. Paid for rent, 700. 6. Goods costing ₹ 40,000 sold at a profit of 20% for cash ...

A particular forecasting model was used to forecast a six-month period. Here are the forecasts and actual demands that resulted: FORECAST ACTUAL April 244 344 May 318 468 June 393 493 July 343 293 August 368 268 September 443 568 a. Find the tracking signal for each month.

Answers

Answer:

MONTH    TRACKING SIGNAL

April                    1

May                    2

June                   3

July                     3

August                2

September         3

Explanation:

Given the data in the question;

   A              B                C              D          E            F                   G

Month     Forecast     Actual      Error     |Error|     RSFE          MAD

                                                                              cumulative

                                                    C-D       |C-D|       of D          

April             244         344          100        100        100            100.00

May              318          468          150       150         250           125.00

June             393         493          100       100         350           116.67

July               343         293         -50        50          300           100.00

August          368         268        -100      100          200           100.00

September   443         568        125        125          325            104.17

the tracking signal for each  month will be;

Tracking Signal =  

Running Sum of Forecast Errors (RSFE) / Mean Absolute Deviation (MAD)

so substitute

Month of APRIL;

Tracking signal = 100 / 100.00  = 1

Month of MAY;

Tracking signal = 250 / 125.00  = 2

Month of JUNE;

Tracking signal = 350 / 116.67 = 2.9999 ≈ 3

Month of JULY;

Tracking signal = 300 / 100.00 = 3

Month of AUGUST;

Tracking signal = 200 / 100 = 2

Month of SEPTEMBER;  

Tracking signal = 325 / 104.17 = 3.11 ≈ 3

Therefore,

MONTH    TRACKING SIGNAL

April                    1

May                    2

June                   3

July                     3

August                2

September         3

Sandhill Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,650 per month. One of the barbers serves as the manager and receives an extra $500 per month. In addition to the base rate, each barber also receives a commission of $5.50 per haircut. Other costs are as follows.
Advertising $260 per month
Rent $800 per month
Barber supplies $0.30 per haircut
Utilities $185 per month plus $0.20 per haircut
Magazines $20 per month
Determine the variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, e.g. 2.25.)
Total variable cost per haircut $
Total fixed $

Answers

Answer:

the variable costs per haircut and the total monthly fixed costs is $6 per haircut and $13,315 respectively

Explanation:

The computation is given below:

The variable cost per haircut should be

= $5.50 + $0.20 + $0.30

= $6 per haircut

And, the fixed cost should be

= 7 × $1,650 + $500 + $260 + $800 + $185  + $20

= $13,315

So, the variable costs per haircut and the total monthly fixed costs is $6 per haircut and $13,315 respectively

The following information relating to a company's overhead costs is available. Actual total variable overhead $ 73,000 Actual total fixed overhead $ 17,000 Budgeted variable overhead rate per machine hour $ 2.50 Budgeted total fixed overhead $ 15,000 Budgeted machine hours allowed for actual output 30,000 Based on this information, the total variable overhead variance is:

Answers

Answer: $2,000 favorable

Explanation:

Total variable overhead variance = Budgeted variable overhead - Actual total variable overhead

Budgeted variable overhead = Budgeted machine hours allowed for actual output * Budgeted variable overhead rate per machine hour

= 30,000 * 2.50

= $75,000

Total variable overhead variance = 75,000 - 73,000

= $2,000 favorable

Favorable because the actual amount was less than the budgeted one.

As part of a strategic planning process, Midwest Power's senior executives determined positive findings from their SWOT analysis: (1) New regulations will
provide tax credits for renewable ("green") power sources. (2) Their customers will pay higher prices for green power. (3) A competing power utility that
owns renewable power sources is struggling and might be a target to be acquired by Midwest Power. (4) As compared to their competitors, Midwest
Power's management team is one of the best in the industry. A strength of Midwest Power, per the SWOT analysis, is that

Answers

Answer:

4) As compared to their competitors, Midwest  Power's management team is one of the best in the industry.

Explanation:

The strategic planning process is a documentation that establishes a direction for the small business by assenting where you are asserts the mission and mission along with the long term goals.

Green Industries purchased a machine from Cyan Corporation on October 1, 2021. In payment for the $145,000 purchase, Green issued a one-year installment note to be paid in equal monthly payments at the end of each month. The payments include interest at the rate of 18%. Monthly installment payments are closest to\

Answers

Answer: $13293.59

Explanation:

The following information can be deduced from the question:

Number of periods (n) = 12

Interest rate(i) = 18%/12 = 1.5%

Purchase price = $145000

PVA = [1 -(1.015)^-12] / 0.015 = 10.90751

Monthly installments payment = Purchase price / PVA

= $145000 / 10.90751

= $13293.59

Two investment centers at Marshman Corporation have the following current-year income and asset data:
Investment Center A Investment Center B
Investment center income$525,000 $635,000
Investment center average invested assets$4,600,000 $3,050,000
The return on investment (ROI) for Investment Center A is:________.

Answers

Answer: 11.41%

Explanation:

Return on assets refers to the amount of income earned per capital invested. It is calculated by the formula:

= Net income / Average assets invested

ROI for Center A will therefore be:

= 525,000 / 4,600,000

= 0.1141

= 11.41%

The ledger of Mai Company includes the following accounts with normal balances: D. Mai, Capital $10,100; D. Mai, Withdrawals $1,350; Services Revenue $24,000; Wages Expense $13,900; and Rent Expense $3,800.
Prepare the necessary closing entries from the available information at December 31.

Answers

Answer:

Dec. 31

Dr Service Revenue $24,000

Cr Income Summary $24,000

Dec. 31

Dr Income Summary $17,700

Cr Wages expense $13,900

Cr Rent expense $3,800

Dec. 31

Dr Income Summary $6,300

Cr Retained Earnings $6,300

Dec 31

Dr Services Revenue $1,350

Cr D. Mai, Withdrawals $1,350

Explanation:

Preparation of the necessary closing entries from the available information at December 31.

General Journal

Dec. 31

Dr Service Revenue $24,000

Cr Income Summary $24,000

Dec. 31

Dr Income Summary $17,700

($13,900+$3,800)

Cr Wages expense $13,900

Cr Rent expense $3,800

Dec. 31

Dr Income Summary $6,300

Cr Retained Earnings $6,300

($24,000-$17,700)

Dec 31

Dr Services Revenue $1,350

Cr D. Mai, Withdrawals $1,350

The Fisher Effect equation can be used to determine the real interest rate. Use this equation to determine the answer to the question. If the nominal interest rate is 0.1100.110 , and the inflation rate is 0.0250.025 , what is the real interest rate

Answers

Answer:

0.075%

Explanation:

Interest rate is the rate earned on deposits or the rate charged on loans.

Interest rate could be real or nominal

Nominal interest rate is real interest rate plus inflation rate

Real interest rate is interest rate that has been adjusted for inflation

Fisher effect equation : ( 1 + nominal interest rate) = (1 + real interest rate) x (1 + inflation rate)

(1 + 0.001) =  (1 + real interest rate) x (1 + 0.00025)

1.001 = (1 + real interest rate) x (1.00025)

1.001 /  (1.00025) = (1 + real interest rate)

1.00075  = (1 + real interest rate)

real interest rate = 1.00075 - 1

= 0.00075 = 0.075%

Unlike a stock dividend, a stock split _____. multiple choice is always recorded at market value does not change total stockholders' equity reduces the par value of the stock increases the total number of shares outstanding

Answers

Answer:

reduces the par value of the stock.

Explanation:

A stock is also referred to as equity and it can be defined as a security that represents a stockholder's ownership of a fraction of a corporation.

The par value of a stock is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a stock gives the basis on which periodic interest is paid.

A stock is issued at par value when the market rate of interest is the same as the contract rate of interest. This simply means that, a stock would be issued at par (face) value when the stock's stated rated is significantly equal to the effective or market interest rate on the specific date it was issued.

Stockholders' equity can be defined as the amount of assets remaining or the residual interest of assets in a business after all liabilities are settled or deducted. A stockholders' equity is calculated by deducting or subtracting the value of liabilities from the value of assets on the balance sheet of a company.

Additionally, statement of changes in stockholders' equity is a financial statement that illustrate a summary of the changes in shareholders' equity (gains and losses that increase or decrease stockholders' equity respectively) over the reporting period.

In Trading and securities, a stock split reduces the par value of the stock whereas a stock dividend increases the par value of a stock.

International Data Systems' information on revenue and costs is relevant only up to a sales volume of 121,000 units. After 121,000 units, the market becomes saturated and the price per unit falls from $10.00 to $6.80. Also, there are cost overruns at a production volume of over 121,000 units, and variable cost per unit goes up from $5.00 to $5.25. Fixed costs remain the same at $71,000.

Required:
a. Compute operating income at 121,000 units.
b. Compute operating income at 221,000 units.

Answers

Answer:

a. $534,000

b. $271,550

Explanation:

a. Compute operating income at 121,000 units

Using this formula

Operating Income = (Price per unit - Variable cost per unit)*Units - Fixed costs

Let plug in the formula

Operating Income = ($10.00 - $5.00)*121,000 - $71,000

Operating Income = ($5.00)*121,000 - $71,000

Operating Income =$605,000-$71,000

Operating Income = $534,000

Therefore operating income at 121,000 units is $534,000

b. Compute operating income at 221,000 units

Using this formula

Operating Income = (Price per unit - Variable cost per unit)*Units - Fixed costs

Let plug in the formula

Operating Income = ($6.80 - $5.25)*221,000 - $71,000

Operating Income = $1.55*221,000-$71,000

Operating Income = $342,550-$71,000

Operating Income = $271,550

Therefore operating income at 121,000 units at 221,000 units is $271,550

Consider the following facts:

a. Firm S makes 1,000 t-shirts with the cotton for a total cost of $1.50 per t-shirt. They sell all of the shirts to Firm R for $2.00 each.
b. Firm R sells 900 of the t-shirts to consumers for $10 each and the total cost of producing each shirt is $8 each.
c. There are no other firms in this simple economy.

The value of consumption spending is $______________

Answers

Answer and Explanation:

The computation of the  value of consumption spending is given below:

Value of consumption spending is

= Sells price to the cosnumers - producing price each shirt

= $10 - $8

= 2

ANd, the Total value is

= 8 × 900

= $7,200

The above formula should be applied for the same

In a responsive culture, _____. management does not expect the employees to challenge or change the status quo. employees feel free to make recommendations to management to change existing practices. management tends to be inward-looking and politically motivated. good ideas do not get communicated upward because management is not very approachable.

Answers

In a responsive culture, 'management does not expect the employees to challenge or change the status quo.'

Responsive culture in an organization conveys that it aims to give importance to the needs, and preferences of its customers and adapting to them accordingly. The employees, therefore, are not expected to show defiance against the current circumstances or requirements. They are rather expected to adapt to the present circumstances and serve their customers with the best of their abilities and cater to their demands effectively and efficiently.

Learn more about 'Business culture' here:

brainly.com/question/14965381

Which part of a persuasive message should catch your audience's interest and lure them into your
topic?
O Concluding device
O Attention statement
O Epilogue
O Supporting material

Answers

Answer:

Attention Statement

Explanation:

The name is self explanitiry

A TV manufacturer offers warranties on its new TV sales. During December 2004, TV sales totaled $205,000. Past experience shows that warranty expense averages about 3% of the annual sales. What adjusting journal entry should be recorded on December 31, 2004 to account for the warranty expense

Answers

Answer:

Date                    Account Title                                        Debit              Credit

Dec 31, 2004     Warranty expense                             $6,150

                           Warranty Liability                                                    $6,150

Explanation:

First calculate the warranty expense:

= TV sales total * Warranty expense averages

= 205,000 * 3%

= $6,150

This will be credited to the Warranty liability account to reflect that the company potentially owes $6,150 in warranty expenses to people who purchased TVs.

The Learning Journal is a space where you should reflect on what was learned during the week and how it applies to your daily life and will help you with your life (career) goals.

a. True
b. False

Answers

the answer is A. true

Musashi and Rina run a catering business in which they have two major tasks: getting new clients and preparing food for events and parties. It takes Musashi 10 hours to prepare the food for an event and 5 hours of effort to get each new client. For Rina, it takes 12 hours to prepare food for an event and 3 hours to get a new client. In this scenario,____has an absolute advantage in food preparation,and____has a comparative advantage in food preparation.

Answers

Answer:

Musashi

Musashi

Explanation:

A person has comparative advantage in production if it produces at a lower opportunity cost when compared to other people.

opportunity cost of preparing food

Musashi = 5 / 10 = 0.20

Rina = 3 / 12 = 0.25

Musashi has a lower opportunity cost in food preparation. She has a comparative advantage in food preparation

A person has absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other people

Musashi prepares food in 10 hours while Rina does in 12 hours

Musashi prepares food faster, thus, she has an absolute advantage in good preparation

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